After a Loan Modification Question - Loan Modification Forum

patrick101 · 12-16-2008, 02:54 PM

Hi,

Right now I have non-recourse 1st and 2nd loans on a property. If I apply for a loan modification or short refinance and it is successful, would my loans become recourse loans?

Thanks.
Patrick

The Professor · 12-16-2008, 08:46 PM

Care should be taken to insure that all you are doing is modifying the terms of the original promissory note. Doing that, and not paying the note off and replacing it with a new debt should shield you from any potential claim that its non-recourse nature is lost, as long as all you are doing it modifying terms.

Take care,

Daniel

patrick101 · 12-17-2008, 09:46 AM

Thanks Daniel.

12-16-2008, 02:54 PM	#1 (permalink)
patrick101 Member Join Date: Oct 2008 Posts: 8 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	After a Loan Modification Question Hi, Right now I have non-recourse 1st and 2nd loans on a property. If I apply for a loan modification or short refinance and it is successful, would my loans become recourse loans? Thanks. Patrick

12-16-2008, 08:46 PM	#2 (permalink)
The Professor Senior Member Join Date: Jul 2008 Location: 49er Gold Country Posts: 1,543 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: After a Loan Modification Question Care should be taken to insure that all you are doing is modifying the terms of the original promissory note. Doing that, and not paying the note off and replacing it with a new debt should shield you from any potential claim that its non-recourse nature is lost, as long as all you are doing it modifying terms. Take care, Daniel

12-17-2008, 09:46 AM	#3 (permalink)
patrick101 Member Join Date: Oct 2008 Posts: 8 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: After a Loan Modification Question Thanks Daniel.

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